VA awards $5.6M for social worker staffing, with 21 bids received

Contract Overview

Contract Amount: $5,628,876 ($5.6M)

Contractor: Caduceus Healthcare Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-23

End Date: 2025-09-22

Contract Duration: 1,095 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SOCIAL WORKER STAFFING SERVICES FOR VAGLAHS.

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.6 million to CADUCEUS HEALTHCARE INC for work described as: SOCIAL WORKER STAFFING SERVICES FOR VAGLAHS. Key points: 1. Contract value appears reasonable given the duration and scope. 2. Strong competition indicates potential for good price discovery. 3. No immediate red flags identified in contract terms. 4. Performance context is crucial for assessing long-term value. 5. This contract supports essential healthcare services within the VA. 6. The fixed-price structure offers cost certainty.

Value Assessment

Rating: good

The contract's total value of $5.6 million over three years suggests a moderate annual spend. Benchmarking against similar staffing contracts for social workers within the federal government is difficult without more specific service details. However, the firm fixed-price nature of the award provides a degree of cost control for the VA. The number of bids received (21) suggests a competitive market for these services, which typically drives better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation. The receipt of 21 bids suggests a healthy level of interest and a competitive marketplace for social worker staffing services. This robust competition is generally favorable for price discovery, as it allows multiple vendors to offer their best pricing and terms.

Taxpayer Impact: The high number of bidders means taxpayers likely benefited from competitive pricing, as contractors vied to win the award by offering the most attractive proposals.

Public Impact

Veterans in California will benefit from increased access to social work services. The contract ensures the availability of qualified social workers to support patient care. Geographic impact is focused on the VA's Los Angeles facilities. Workforce implications include the direct employment of social workers by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to understaff if not closely monitored.
Reliance on a single contractor for critical staffing needs.
Ensuring consistent quality of care across all assigned social workers.

Positive Signals

Strong competition suggests a capable pool of potential providers.
Firm fixed-price contract provides budget certainty.
Long-term contract allows for stable staffing levels.

Sector Analysis

The healthcare staffing sector is a significant component of federal spending, particularly within agencies like the Department of Veterans Affairs. This contract falls under temporary help services, specifically targeting healthcare professionals. The market for such services is competitive, with numerous firms specializing in providing skilled personnel to government and private entities. The VA's consistent need for specialized medical and support staff makes this a recurring area of expenditure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further review of the contract's subcontracting plan would be necessary to determine any specific small business utilization.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

VA Medical Services Contracts
Healthcare Staffing Services
Temporary Staffing Solutions
Social Work Support Services

Risk Flags

Potential for staffing shortages if contractor fails to recruit adequately.
Ensuring consistent quality of care across all contracted social workers.
Dependence on contractor performance for critical veteran support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.6 million to CADUCEUS HEALTHCARE INC. SOCIAL WORKER STAFFING SERVICES FOR VAGLAHS.

Who is the contractor on this award?

The obligated recipient is CADUCEUS HEALTHCARE INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2022-09-23. End: 2025-09-22.

What is the track record of Caduceus Healthcare Inc. with federal contracts, particularly with the VA?

Caduceus Healthcare Inc. has a history of securing federal contracts, including those with the Department of Veterans Affairs. Analyzing their past performance on similar contracts is crucial. This involves reviewing their delivery history, any past performance issues or awards, and their overall experience in providing healthcare staffing services. A review of their contract portfolio would reveal their capacity to manage large-scale staffing requirements and their adherence to federal acquisition regulations. Understanding their financial stability and operational capacity is also key to assessing their reliability as a contractor for essential services like social worker staffing.

How does the awarded price compare to market rates for social worker staffing in California?

Determining the precise market rate comparison for this $5.6 million contract requires detailed service level agreements and specific qualifications of the social workers to be provided. However, the fact that 21 bids were received suggests that the market is competitive. Generally, a higher number of bidders indicates that contractors are willing to compete on price. To perform a thorough benchmark, one would need to compare the estimated hourly or daily rates for social workers with similar experience and credentials in the Los Angeles area, factoring in overhead, benefits, and profit margins. Without specific per-unit cost data, a definitive comparison is challenging, but the competitive bidding process offers a positive signal for value.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include potential difficulties in recruiting and retaining qualified social workers by the contractor, leading to staffing shortages. There's also a risk of inconsistent service quality if the contractor does not adequately vet or train their staff. Furthermore, scope creep or unforeseen service demands could strain the contract's budget if not managed properly. Mitigation strategies likely include the VA's robust oversight, performance monitoring, and clear contractual requirements for staffing levels and qualifications. The firm fixed-price structure also incentivizes the contractor to manage costs effectively. Regular performance reviews and clear communication channels are essential to address these risks proactively.

How effective has the VA been in utilizing social worker staffing contracts to meet veteran needs historically?

The VA's utilization of social worker staffing contracts is a critical component of its strategy to address the complex needs of veterans, including mental health, homelessness, and readjustment challenges. Historically, these contracts have been essential in supplementing the VA's direct hire workforce, particularly in areas facing staffing shortages or requiring specialized expertise. The effectiveness can be measured by veteran satisfaction surveys, wait times for appointments, and the successful resolution of social and psychological issues. While specific data on the effectiveness of this particular contract is pending, the VA's continued reliance on such services indicates their perceived value in augmenting care delivery and ensuring veterans receive necessary support.

What is the historical spending trend for social worker staffing services by the Department of Veterans Affairs?

The Department of Veterans Affairs has consistently allocated significant funds towards healthcare staffing, including social worker services, to meet the growing and complex needs of the veteran population. Historical spending data would likely show a trend of increasing investment in these areas, driven by factors such as expanded healthcare access, increased demand for mental health services, and efforts to reduce wait times. Analyzing year-over-year spending on similar contracts can reveal patterns of demand, potential budget fluctuations, and the agency's strategic priorities in resource allocation for support services. This specific contract represents a portion of that broader historical expenditure.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 57 FORSYTH ST NW, ATLANTA, GA, 30303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,224,140

Exercised Options: $5,628,876

Current Obligation: $5,628,876

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26222D0066

IDV Type: IDC

Timeline